Electric vehicles (EVs) are no longer a niche segment in the global automotive market—they are a central pillar of national decarbonization strategies, technological competition, and industrial policy. According to the International Energy Agency’s Global EV Outlook 2025, global electric car sales surpassed 17 million units in 2024, accounting for more than 20% of all new car sales. This is more than five times the total number of EVs sold just four years ago. The momentum shows no signs of slowing: first-quarter sales in 2025 already indicate a 35% year-on-year increase, with full-year sales projected to exceed 20 million units and represent one-quarter of global car sales.
Yet beneath the headline figures lie complex regional dynamics, policy tensions, and shifting trade patterns that will shape the next phase of EV adoption. From China’s dominance in manufacturing and exports, to affordability challenges in the West, and rapid electrification in emerging economies, this article explores the key takeaways from the IEA’s latest analysis.
The global EV market in 2024 was defined by unprecedented growth in China and significant momentum in emerging markets, offset by stagnation in Europe and only modest gains in the United States.
China continued to lead by a wide margin. Over 11 million electric cars were sold in China in 2024, representing nearly two-thirds of global EV sales. The country now has 1 in 10 cars on the road powered by electricity. The introduction of a national trade-in scheme, offering up to USD 2,750 in subsidies for replacing older vehicles with EVs, helped drive the uptake—60% of the 6.6 million applicants bought electric cars.
Meanwhile, emerging markets across Southeast Asia and Latin America are becoming vital centers of growth. Brazil saw EV sales more than double to 125,000 units, capturing a 6.5% market share. In Southeast Asia, Thailand reached a 13% EV share in new car sales, despite tightening credit markets. Overall, emerging economies outside China recorded a 60% increase in EV sales, reaching nearly 600,000 units.
Europe's sales stagnated at around 20% of total new car sales, affected by the phase-out of subsidies in countries like Germany and France. Similarly, U.S. growth slowed to just 10%, though the country still sold 1.6 million EVs. Model variety has improved in the U.S.—110 EV models are now available—but price parity remains elusive.
China is the undisputed global hub for EV production, responsible for over 70% of the 17.3 million electric cars manufactured in 2024. Chinese OEMs accounted for more than 80% of this domestic production, and their global expansion is accelerating. Chinese-made EVs accounted for 40% of global exports in 2024. Exports to Brazil, Mexico, and Southeast Asia surged, driven in part by frontloaded shipments ahead of new import tariffs.
However, trade tensions are reshaping global supply chains. The U.S., Canada, European Union, Mexico, and Brazil have all enacted or proposed higher tariffs on Chinese EV imports. In response, Chinese manufacturers are investing in overseas plants. BYD, Geely, and SAIC are setting up production facilities in Brazil, Thailand, and Türkiye. The IEA projects that overseas manufacturing capacity of Chinese OEMs will more than double by 2026, reaching 4.3 million vehicles annually.
The European Union remains a net exporter of EVs, producing 2.4 million electric cars in 2024. However, production is uneven across manufacturers. Tesla and Ford increased EU production, while Stellantis and Renault reduced output by over 15%. In North America, U.S. production fell, while Mexico doubled its EV output, now accounting for over 70% of U.S.-bound exports.
Affordability remains the most significant barrier to mass adoption, especially in mature markets. While battery pack prices fell over 25% globally in 2024, many Western consumers still face steep premiums. In Germany, battery electric vehicles (BEVs) are on average 20% more expensive than comparable internal combustion engine vehicles (ICEVs). In the U.S., that premium is around 30%.
In contrast, China has flipped the affordability equation. Two-thirds of EVs sold in China are now cheaper than ICEVs, even without subsidies. BYD’s compact Seagull BEV, priced around USD 11,000, was one of the best-selling models globally in 2024. In Thailand, BEV prices have reached parity with conventional cars, and in Brazil, the price gap shrank from over 100% in 2023 to 25% in 2024.
Emerging markets are benefitting from the influx of low-cost Chinese imports. In Brazil and Thailand, 85% of EVs sold came from China. Even in India, domestic OEMs like Tata are launching EVs under USD 10,000. Yet this reliance on imported vehicles may face headwinds as countries phase in local production requirements and revise tax incentives.
Charging infrastructure is struggling to keep pace with vehicle adoption. Globally, the number of public chargers has doubled over the past two years, yet demand is rising faster. In the U.S. and U.K., public charger deployment lags significantly behind EV sales, raising concerns about charging equity and long-distance usability.
Ultra-fast chargers (150 kW and above) grew 50% in 2024 and now make up 10% of public fast chargers. Europe leads in highway coverage, with fast-charging stations every 50 km on over 75% of highways—compared to less than half in the U.S.
Heavy-duty vehicle electrification is also gaining traction. Electric truck sales grew nearly 80% in 2024, reaching 90,000 units. China led again, doubling its sales to 75,000 trucks, aided by scrappage incentives and new emissions standards. Total cost of ownership (TCO) analysis suggests that by 2030, BEV trucks will be cost-competitive for long-haul use in China and the EU. In the U.S., higher electricity and labor costs delay that parity.
Electric buses also saw a 30% global sales increase in 2024. While China accounts for 70% of these sales, countries like India, Italy, and the U.K. are rapidly expanding their fleets. Leasing models, public-private partnerships, and national incentive schemes are proving effective in scaling deployments.
The global EV transition is entering a more complex and multipolar phase. While growth remains strong, it is increasingly defined by regional disparities in policy, affordability, and industrial strategy. China’s dominance in both production and cost-competitiveness positions it as a formidable player on the global stage, but rising trade barriers and calls for domestic self-sufficiency are likely to reshape global supply chains.
For emerging markets, EVs present a rare opportunity to leapfrog traditional auto manufacturing and contribute to global decarbonization, especially as prices fall and model variety expands. For advanced economies, the challenge is clear: align regulatory ambition with affordable EV offerings, build adequate charging infrastructure, and maintain competitiveness in an evolving global market.
The next five years will be pivotal. As EVs head toward accounting for over 40% of car sales by 2030 under current policy trajectories, the focus must shift from pilot programs to scalable, inclusive, and resilient deployment strategies. Success will depend not just on technology and economics, but also on smart policymaking, international collaboration, and continued investment in supporting infrastructure.
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